CCI fines Rs 256 crore on Jet Airways, IndiGo, SpiceJet for fuel surcharge collusion

NEW DELHI: Competition watchdog has imposed penalties to the tune of Rs 151 crore on Jet Airways, Rs 63 crore on IndiGo and Rs 42 crore on Spice Jet, finding the airlines guilty of colluding in fixing of fuel surcharge for cargo transportation.

CCI in its order said that conduct of these companies undermined economic development of the country and was detrimental to consumers' interest.

“Considering the precarious financial position of airlines, the penalty has been imposed by the Commission at 1% of their average turnover of the last three financial years,” CCI said in a statement on Tuesday.

The final order was passed by CCI on Tuesday in a matter which was filed by Express Industry Council of India under the Competition Act against Jet Airways, InterGlobe Aviation, Spice Jet, Air India and Go Airlines alleging anti-competitive agreements.

“The airlines acted in parallel in collusion in fixing FSC rates. Such conduct was found to have resulted in indirectly determining the rates of air cargo transport and thereby in contravention of the Competition Act,” CCI said.

However, CCI has not imposed any penalty on Air India and Go Airlines.